Estee Lauder 2007 Annual Report Download - page 59

YEAR ENDED JUNE 30 2007 2006 2005
(In millions)
Cash Flows from Operating Activities
Net earnings $ 449.2 $ 244.2 $ 406.1
Adjustments to reconcile net earnings to net cash fl ows from operating activities:
Depreciation and amortization 207.2 198.4 196.7
Deferred income taxes 9.9 (74.3) 104.9
Minority interest, net of tax 7.1 11.6 9.3
Non-cash stock-based compensation 43.3 35.9 (1.2)
Excess tax benefi ts from stock-based compensation arrangements (9.4) (6.7) —
Loss on disposal of fi xed assets 13.4 13.2 9.8
Discontinued operations, net of tax (0.5) 80.3 —
Other non-cash items 11.8 0.8 1.1
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable, net (68.0) 14.6 (106.6)
Decrease (increase) in inventory and promotional merchandise, net (70.8) 1.9 (105.1)
Decrease (increase) in other assets (26.3) 7.0 6.0
Increase (decrease) in accounts payable 46.4 9.1 (23.9)
Increase in accrued income taxes 44.9 63.5 21.0
Increase (decrease) in other accrued liabilities 13.1 66.2 (47.5)
Increase (decrease) in other noncurrent liabilities (4.0) 61.6 8.6
Net cash fl ows provided by operating activities of continuing operations 667.3 727.3 479.2
Net cash fl ows used for operating activities of discontinued operations (5.7) (17.5) (1.1)
Net cash fl ows provided by operating activities 661.6 709.8 478.1
Cash Flows from Investing Activities
Capital expenditures (312.1) (260.6) (229.6)
Capital expenditures of discontinued operations — (0.6) —
Acquisition of businesses, net of cash acquired (61.2) (51.7) (7.1)
Proceeds from divestitures — 9.3 —
Proceeds from disposition of long-term investments — 0.5 —
Purchases of long-term investments (0.5) (0.1) (0.3)
Net cash fl ows used for investing activities (373.8) (303.2) (237.0)
Cash Flows from Financing Activities
Increase (decrease) in short-term debt, net (31.6) (82.0) 158.6
Proceeds from issuance of long-term debt, net 590.6 — —
Proceeds from the net settlement of interest rate derivatives (11.1) — —
Repayments and redemptions of long-term debt (5.6) (97.8) (2.5)
Net proceeds from employee stock transactions 154.1 67.3 80.6
Excess tax benefi ts from stock-based compensation arrangements 9.4 6.7 —
Payments to acquire treasury stock (1,004.3) (400.5) (438.6)
Dividends paid to stockholders (103.6) (85.4) (90.1)
Distributions made to minority holders of consolidated subsidiaries (9.5) (2.9) (8.4)
Net cash fl ows used for fi nancing activities (411.6) (594.6) (300.4)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 8.9 3.3 1.0
Net Decrease in Cash and Cash Equivalents (114.9) (184.7) (58.3)
Cash and Cash Equivalents at Beginning of Year 368.6 553.3 611.6
Cash and Cash Equivalents at End of Year $ 253.7 $ 368.6 $ 553.3
Supplemental disclosures of cash fl ow information (Note 16)
Cash paid during the year for:
Interest $ 44.6 $ 33.8 $ 23.1
Income Taxes $ 199.6 $ 256.9 $ 164.4
2
007
$
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See notes to consolidated fi nancial statements.
58 THE EST{E LAUDER COMPANIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS